AU-C

Question 1

Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance With Generally Accepted Auditing Standards

Answer 1

AU-C sec. 200

This section addresses the independent auditor’s overall responsibilities when conducting an audit of financial statements in accordance with generally accepted auditing standards (GAAS).

Question 2

Terms of Engagement

Answer 2

AU-C sec. 210

This section addresses the auditor’s responsibilities in agreeing upon the terms of the audit engagement with management and, when appropriate, those charged with governance.

Question 3

Quality Control for an Engagement Conducted in Accordance With Generally Accepted Auditing Standards

Answer 3

AU-C sec. 220

This section addresses the specific responsibilities of the auditor regarding quality control procedures for an audit of financial statements. It also addresses, when applicable, the responsibilities of the engagement quality control reviewer.

Question 4

Audit Documentation

Answer 4

AU-C sec. 230

This section addresses the auditor’s responsibility to prepare audit documentation for an audit of financial statements.

Question 5

Consideration of Fraud in a Financial Statement Audit

Answer 5

AU-C sec. 240

This section addresses the auditor’s responsibilities relating to fraud in an audit of financial statements.

Question 6

Consideration of Laws and Regulations in an Audit of Financial Statements

Answer 6

AU-C sec. 250

This section addresses the auditor’s responsibility to consider laws and regulations in an audit of financial statements.

Question 7

The Auditor’s Communication With Those Charged With Governance

Answer 7

AU-C sec. 260

This section addresses the auditor’s responsibility to communicate with those charged with governance in an audit of financial statements.

Question 8

Communicating Internal Control Related Matters Identified in an Audit

Answer 8

AU-C sec. 265

This section addresses the auditor’s responsibility to appropriately communicate to those charged with governance and management deficiencies in internal control that the auditor has identified in an audit of financial statements.

Question 9

Planning an Audit

Answer 9

AU-C sec. 300

This section addresses the auditor’s responsibility to plan an audit of financial statements.

Question 10

Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement

Answer 10

AU-C sec. 315

This section addresses the auditor’s responsibility to identify and assess the risks of material misstatement in the financial statements through understanding the entity and its environment, including the entity’s internal control.

Question 11

Materiality in Planning and Performing an Audit

Answer 11

AU-C sec. 320

This section addresses the auditor’s responsibility to apply the concept of materiality in planning and performing an audit of financial statements.

Question 12

Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained

Answer 12

AU-C sec. 330

This section addresses the auditor’s responsibility to design and implement responses to the risks of material misstatement identified and assessed by the auditor in accordance with AU-C section 315 and to evaluate the audit evidence obtained in an audit of financial statements.

Question 13

Audit Considerations Relating to an Entity Using a Service Organization

Answer 13

AU-C sec. 402

This section addresses the user auditor’s responsibility for obtaining sufficient appropriate audit evidence in an audit of the financial statements of a user entity that uses one or more service organizations.

Question 14

Evaluation of Misstatements Identified During the Audit

Answer 14

AU-C sec. 450

This section addresses the auditor’s responsibility to evaluate the effect of identified misstatements on the audit and the effect of uncorrected misstatements, if any, on the financial statements.